Energy conservation and increased energy efficiency

The summary program for energy conservation and increased energy efficiency
for 2011-2015 was approved by the Board of Directors on May 6, 2011 (Minutes
No. 135 dated May 10, 2011). The adjusted program was approved by the Board
of Directors on October 3, 2011 (Minutes No. 149 dated October 6, 2011).

This program provides the following targets for energy conservation and increased
energy efficiency:

reducing electricity losses from 11.15% of overall output to the grid in 2010 to
9.2% in 2015;

reducing electricity consumption for business needs by 1.87 million kWh in
2011-2015;

conserving 2,052 million kWh in 2011-2015, which is equivalent to 707,000 tons
of standard fuel, or 8,416 million rubles in value terms.

Implementation of program targets for 2011

Indicator

Measurement unit

2011

Plan

Actual

1.

Electricity output to grid

mln kWh

84,830

84,165

2.

Electricity output to consumers

mln kWh

75,585

75,470

3.

Electricity losses

mln kWh% of output to grid

9,24510.90

8,69610.33

4.

Electricity savings by volume

mln kWh

308

352

5.

Electricity savings by value

mln rubles

711

759

6.

Operating expenses / capital investments

mln rubles

2,475

3,107

Operating expenses and capital investments by program activity in 2011,
mln rubles

Information on energy consumption for production and business needs in 2011

Energy resources delivered based on supply contracts (purchase-sale), including

‘000 rubles*

275,888

201,893

435,758

374,804

711,646

576,697

1.1.

– electricity

‘000 rubles

58,641

36,293

160,449

154,411

219,090

190,704

‘000 kWh

15,462

15,552

42,615

41,012

58,077

56,563

1.2.

– heat

‘000 rubles

48,233

45,402

31,662

29,408

79,894

74,810

Gcal

35,378

32,384

21,764

120,171

57,141

52,555

1.3.

– cold water

‘000 rubles

15,406

14,230

5,207

2,614

20,613

16,843

‘000 m3

323

292

197

128

520

420

1.4.

– hot water

‘000 rubles

319

249

1,522

1,115

1,840

1,364

Gcal

211

147

826

525

1,037

672

‘000 m3

0

0

9

9

9

9

1.5.

– natural gas

‘000 rubles

0

0

948

666

948

666

‘000 m3

0

0

271

162

271

162

1.6.

– fuel (motor fuel, diesel)

‘000 rubles

153,290

105,720

235,970

186,590

389,260

292,310

‘000 tons of standard fuel

8

5

11

9

18

15

№

Indicator

Measurement unit

Moscow

Moscow Region

Total for Company

Plan

Actual

Plan

Actual

Plan

Actual

* including VAT.

1.

Energy resources delivered based on supply contracts (purchase-sale), including

‘000 rubles*

275,888

201,893

435,758

374,804

711,646

576,697

1.1.

– electricity

‘000 rubles

58,641

36,293

160,449

154,411

219,090

190,704

‘000 kWh

15,462

15,552

42,615

41,012

58,077

56,563

1.2.

– heat

‘000 rubles

48,233

45,402

31,662

29,408

79,894

74,810

Gcal

35,378

32,384

21,764

120,171

57,141

52,555

1.3.

– cold water

‘000 rubles

15,406

14,230

5,207

2,614

20,613

16,843

‘000 m3

323

292

197

128

520

420

1.4.

– hot water

‘000 rubles

319

249

1,522

1,115

1,840

1,364

Gcal

211

147

826

525

1,037

672

‘000 m3

0

0

9

9

9

9

1.5.

– natural gas

‘000 rubles

0

0

948

666

948

666

‘000 m3

0

0

271

162

271

162

1.6.

– fuel (motor fuel, diesel)

‘000 rubles

153,290

105,720

235,970

186,590

389,260

292,310

‘000 tons of standard fuel

8

5

11

9

18

15

The reduction in the actual consumption of resources (electricity, heat, gas, hot
and cold water) for business purposes compared with the targets is attributable
to the following factors:

the installation of meters to track the consumption of resources was fully
completed in late 2010. Actual consumption of resources for 2011 is based on
the meter readings whereas the targets for 2011 were calculated based on
standard resource consumption;

warm weather in November-December 2011;

a reduction in the actual consumption of motor fuel in 2011 compared with
the targets due to a decline in idle running by transport vehicles resulting
from the optimization of the list of gas stations (nearer to the transport
vehicle base) and changes to the transport vehicle base (due to an increase
in the number of vehicles, some of them were transferred to the EPGZ, i.e.
closer to the sites of potential operations);

the transition from a coupon system for vehicle refueling to a card system
and, consequently, increased control and transparency over the refueling
process;

the purchase of new equipment with less fuel consumption;

monitoring the work of transport vehicles with the use of the “Sphere”
system (309 transport vehicles).

«The EFFECT FROM
THE IMPLEMENTATION
OF ACTIVITIES AIMED
AT REDUCING ELECTRICITY
LOSSES IN THE COMPANY’S
GRIDS TOTALED
280 MILLION KWH,
INCLUDING 34 MILLION KWH
FROM THE IMPLEMENTATION
OF TECHNICAL ACTIVITIES
AND 246 MILLION KWH
FROM THE IMPLEMENTATION
OF ORGANIZATIONAL
ACTIVITIES»

All delivery points for electricity, heat, natural and hot and cold water at production
and business buildings and facilities are equipped with meters.

Availability of modern electricity meters on the retail market

№

Indicator

Measurement unit

Plan

Actual

1.

Availability of modern electricity meters on the retail market in accordance with the program for the long-term development of an electricity metering system, including